In a significant development for the cryptocurrency world, Ripple recently obtained the green light from the New York Department of Financial Services to introduce its stablecoin, RLUSD. This milestone has sparked considerable excitement among XRP enthusiasts, reflected in a notable price increase of over 5.4% in just 24 hours. However, as highlighted by Vincent Van Code in a recent X post, the real growth story for XRP might just be beginning. Why could the coming months hold critical importance for XRP? Let’s dive into the details.
XRP’s Price Surge Following RLUSD Approval
At the outset of this month, XRP was trading at a price of $1.95. By December 2, it had peaked at $2.7239. However, from December 3 to 5, the market experienced a significant correction of 17.56%, marking the largest decline since November 5. Despite this, the market has been on a recovery trajectory. Between December 6 and 7, XRP buyers managed to push the price upwards by approximately 16.34%. Yet, on December 9, sellers regained control, pulling the market down by almost 15.14%. Nevertheless, since December 10, the XRP market has seen a consistent surge, registering growth of at least 10.05%.
This recent uptrend aligns with the New York authority’s approval of Ripple’s RLUSD. However, Van Code notes that the current momentum lacks fundamental support. He suggests that the real growth phase will begin once Automated Market Makers (AMM) and Liquidity Pools (LP) are established.
The Role of AMM/LP Setup in Future Growth
According to Van Code, the implementation of AMM and LP setups is crucial for XRP’s future prospects. These setups will allow users to earn a 5% annual percentage yield (APY) on-chain without encountering counterparty risks. The expert anticipates that such configurations will attract substantial capital inflows into the XRP Ledger, setting the stage for a transformative growth phase.
RLUSD Staking and Enhanced XRP Utility
The introduction of RLUSD brings with it the potential for increased XRP utility, primarily through staking options offered by cryptocurrency exchanges. By locking XRP on the XRP Ledger, exchanges can provide attractive returns to users. Additionally, the ability to swap USDT for RLUSD presents opportunities for purchasing XRP and LP tokens. This dynamic could significantly bolster the utility and demand for XRP in the market.
Rising Demand for XRP and Market Implications
Any enhancement in the usability of RLUSD is likely to have a positive impact on XRP’s demand. An increase in demand typically results in a reduction of the token’s supply on exchanges, which can lead to a rise in its price. Van Code emphasizes that Market Makers and bots designed to suppress prices may face challenges with the increasing demand for XRP, potentially paving the way for a more robust market performance.
Projected Timeline for XRP’s Growth
Vincent Van Code envisions sustained growth for the XRP market, potentially extending until at least February 2025. This projection suggests that the coming months could be pivotal for XRP. With RLUSD not only boosting XRP’s price but also transforming its ecosystem, the potential for XRP to experience its strongest performance in years is high. As demand continues to rise and utility expands, the future looks promising for XRP enthusiasts.
